Another foreign fund’s achievements from the beginning of the year until now after the VN-Index corrected more than 100 points

For example, Lumen Vietnam Fund. After the recent market drop, this fund recorded a negative performance of 6.74%, bringing its performance from the beginning of the year down to just under 2%. While in the previous 3 months, the fund recorded a positive performance of more than 9.32%.

The fund’s current portfolio accounts for the largest proportion of FPT at 7.11%; followed by VNM 5.08%; MWG 4.59%; MSN 4.52%; There are also PLX, CTG, STB, VHM, VNM, BVH.

In terms of valuation, the P/E ratio has increased close to the long-term average. The fund believes that the period of undervalued markets is over. However, the fund still maintains a positive view on the market situation in both the medium and long term, based on the following basic principles:

By the end of March 2024, Vn-Index P/B valuation remains low at 1.8x, less than one standard deviation below the 5-year average; Stocks are expected to become the preferred investment channel in Vietnam in the coming years, attracting increased cash input from domestic investors.

Strong overall economic conditions continue to show improvement and the government’s efforts to steer the economy toward promising growth. Notable developments include: Achieving significant progress in upgrading the stock market to the rank of emerging markets after the State Securities Commission (SSC) announced the latest Draft Circular. Key points include: Elimination of pre-trade requirements, allowing brokers to accept buy orders from foreign institutional investors without the need for the customer’s account to be 100% cash-filled.

Procedures are specified in the event of cash shortages or failed trades, with brokers required to take responsibility for owning shares in their trading accounts.

Improve payment obligations between brokers and trust banks; Improve information disclosure through a requirement to publish information in English.

The Government’s initiative in accelerating the promulgation of the Land Law, far exceeding market expectations, shows the potential for a faster-than-expected recovery in the Real Estate sector. Spillover effects from the real estate market recovery are expected to spread to other industries, especially the consumer goods industry.

With its current cash reserves, the fund plans to take advantage of future market volatility to invest in companies with strong growth potential at more appropriate valuations. The fund will prioritize companies with strong financial capacity and have restructured their production and business activities in the past year to better take advantage of expansion and growth opportunities. The diversified investment strategy, focusing on small and mid-cap stocks, will continue to bring good returns in the coming years for the fund.

Previously, a foreign fund, Pyn Elite, also recorded a 9.5% decrease in performance over the past three weeks. Thus, with the decline in the fund, it has lost the results of the past two months, the performance from the beginning of the year decreased from 15% to 5.85% up to now.

“The factors for continuing the upward trend are clear. Rapid corrections are unpleasant but you have to accept them if you want to participate in the market,” fund head Petri Deryng emphasized.

Commenting previously, the fund head also said that the increase in the price of the USD has had a negative impact on other currencies of developing countries in Asia, and the Euro has weakened. The Vietnamese Dong also lost value and political speculation in Vietnam triggered a strong sell-off in the stock market in the early trading sessions of the week.

“However, the prospects for economic growth and profit growth of listed companies this year are excellent. The stock market is being priced very attractively compared to profit growth. Vietnam’s interest rates Nam has decreased and the bank’s liquidity situation is favorable. Large fluctuations in the stock market are unexpected, but do not change our expectations about the positive development of the Vietnam index. “, commented the head of Pyn Elite Fund.